Early pension release

[PhilMaff]

Hi all
I am Phil (48 yrs old) and I care for my wife whom is 53 yrs old.
My wife worked in the banking industry for most of her and post 2006 left HSBC to work for other banking Co.
I am currently exploring how to get my wifes 20+ yrs of pension released early, now, and in full due to early retirement due to ill health (Alzheimer's).

Has anyone any advice or experience with this process, especially if that experience is with HSBC (Tower Watson)

 

[WILLIAMR]

Hi all
I am Phil (48 yrs old) and I care for my wife whom is 53 yrs old.
My wife worked in the banking industry for most of her and post 2006 left HSBC to work for other banking Co.
I am currently exploring how to get my wifes 20+ yrs of pension released early, now, and in full due to early retirement due to ill health (Alzheimer's).

Has anyone any advice or experience with this process, especially if that experience is with HSBC (Tower Watson)

You will have to look at the rules of the scheme and get advice from Tower Watson.
I was partially involved with an employee who got Alzheimer's at about 50 and he only had about 3 years maximum to live. I did not work for HSBC.

The employee got his pension at the full rate for the number of years he had completed ie about half for 30 years.

I know that his pension was guaranteed for 5 years at the full rate so presumably if he lived for 3 years the other 2 would have gone to his estate.
What I am uncertain on is what happened with regard to the widows pension in that case.

We had another employee who died suddenly when he was about 40.
The widow got a lump sum life assurance payment and the widows pension was paid from when the employee would have been 60.

William

 

[BeckyJan]

Its worth checking whether there an Independent Trustee of the Pension Fund - details should be on the '? monthly payslip' or P60. Then write to them asking what options you have. The HSBC should be able to help you locate the correct address if you cannot find it.

 

[PhilMaff]

So far I have approached HSBC (tower Watson) pension fund and they are doing there best to circumnavigate given me the response to:

If the Trustee's agree to early retirement due to ill health will the pension be paid in full and now at 53 years old.

I have initiated the process and we are now into the supplying the medical evidence to the Trustee's.

The policy is to pay in full at 60, early access from 55 (8% reduction per yr) but no information of value if drawn under ill health agreed by the trustee's.

Thank you so far for your responses.

 

[Cloverland]

So far I have approached HSBC (tower Watson) pension fund and they are doing there best to circumnavigate given me the response to:

If the Trustee's agree to early retirement due to ill health will the pension be paid in full and now at 53 years old.

I have initiated the process and we are now into the supplying the medical evidence to the Trustee's.

The policy is to pay in full at 60, early access from 55 (8% reduction per yr) but no information of value if drawn under ill health agreed by the trustee's.

Thank you so far for your responses.

Do you realise that private pension rules are changing in April. I have a pension I can have now but I'm waiting because I will be able to have my money back in full instead of the lump sum with a reduced pension.

So, my advice is if you can wait till April when the rules change and then you can work out which way will benefit your wife the best.

For those already in receipt of private pension there will also be new rules that allow you to have a larger % of the pot as a lump sum. My OH has a pension he did this so again I'm waiting till April to see just how much this will benefit him.

 

[PhilMaff]

Yes from April 2015 you will be able to draw the whole fund in total from aged 55 and then the choice of lump sum is up to you as will be the choice to buy an annuity or not.

With a "salary based" pension such as HSBC I very much doubt you will find an annuity that competes with this defined benefits scheme.

Thank you for your response

 

[tss502]

Hi Phil,

Ask for a 'cash equivalent transfer value' as with the pension changes you should look at whether you want to draw it out as a lump sum rather than taking it as income. Get yourself an independent financial advisor to advise on the best way forward once you've got both the pension as income figure and the cash equivalent tranfer value.

Tracey

 

[Not so Rosy]

When my husband was diagnosed as terminally ill, his pension administrators arranged for him to see a Doctor who compiled a report and recommended a payout. I think my husband got a lump sum of 4 times annual salary. Ironically my husband was still working for the organisation making the payout but on a contract basis and he continued to do so until 10 days before he died. I then got 50% of his pension for life. I was 50.

 

[vonvonvon]

Hi Phil
After reading these posts I've just called Tower Watson ( I worked at Barclays) & they're send me a 'ill health pension' pack
I'll update when I can but they tell me that each case is looked at individually so here goes nothing